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TIM & Fastweb Forge 5G Network Deal
7 Jan
Summary
- Telecom Italia and Fastweb are nearing a mobile network-sharing deal.
- The agreement aims to reduce costs for 5G infrastructure upgrades and operations.
- The pact could save each company up to 300 million euros over a decade.
Telecom Italia (TIM) and Swisscom's Italian unit, Fastweb, are on the verge of signing a significant mobile network-sharing deal. This strategic alliance is intended to reduce the substantial costs involved in upgrading and operating their 5G infrastructure throughout Italy. The agreement, codenamed Prism, is slated for finalization by early March.
This collaboration targets towns with fewer than 35,000 residents and will encompass active network components like antennas and base stations. The aim is to streamline the transition to standalone 5G technology, a crucial upgrade for operators facing persistent price wars and declining revenues. Each operator will manage specific designated areas to prevent duplicated investments.
Industry analysts project potential savings of 250 million to 300 million euros for each company over a 10-year period. This initiative comes as the Italian telecom sector seeks to revamp its business model after years of shrinking revenue and profit margins. The deal is expected to include spectrum sharing and aims to establish a joint venture, although asset and supplier contracts will remain separate for now.
